BYD has begun selling its first electric kei car developed specifically for Japan, entering a vehicle category that accounts for more than one-third of new-car sales in the country.
BYD Auto Japan Co., Ltd., the Japanese passenger-car unit of BYD Company Limited（比亚迪股份有限公司）, launched the BYD RACCO at authorized dealerships nationwide on July 28. Prices range from JPY 2.145 million (USD 14,300) to JPY 2.497 million, including consumption tax.
The RACCO is available in three grades. The entry-level RACCO 200 has a certified driving range of 210 kilometers, while the RACCO 300 Plus and RACCO 300 Premium can travel 320 kilometers on a full charge. The figures are appraisal values approved by Japan’s Ministry of Land, Infrastructure, Transport and Tourism.
All three versions qualify for a JPY 150,000 clean-energy vehicle subsidy, reducing the effective starting price of the base model to JPY 1.995 million, subject to eligibility requirements.
Designed around Japan’s kei-vehicle regulations, the RACCO measures 3,395 millimeters long, 1,475 millimeters wide and 1,800 millimeters high. BYD said it is the first electric kei car specifically designed for the category by a foreign automaker.
The box-shaped, high-roof model has electric sliding doors on both sides, a configuration widely used by Japanese families. Its platform, body, powertrain and control systems were newly developed for the model, according to the company. It also uses BYD’s lithium iron phosphate Blade Battery and a new integrated electric-vehicle system called X-PACK.
The RACCO represents a more localized approach than BYD’s previous Japanese passenger-car launches. Since entering the market, the company has mainly sold models also offered internationally, including the Atto 3, Dolphin, Seal and Sealion 7. The RACCO was instead designed around Japan’s vehicle regulations, narrow roads and preference for tall, space-efficient small cars.
Kei vehicles remain a central part of the Japanese market. Approximately 1.67 million were sold in 2025, representing more than 36% of the country’s new-vehicle sales. The category is dominated by Japanese manufacturers including Suzuki, Daihatsu, Honda, Nissan and Mitsubishi.
BYD is entering the segment as competition among electric kei cars begins to grow. Existing models include the Nissan Sakura, Mitsubishi eK X EV and Honda N-One e:, giving Japanese consumers locally established alternatives supported by mature dealer and service networks.
The Chinese automaker nevertheless enters the launch with a growing, if still relatively small, presence in Japan. BYD registered 2,334 passenger vehicles in the country during the first half of 2026, up 42.7% from a year earlier, according to Japan Automobile Importers Association data cited by the company. More than half of those registrations came from the Sealion 6 plug-in hybrid.
BYD says it now has more than 70 dealership locations in Japan. The RACCO’s launch will test whether a vehicle developed specifically for Japanese regulations and driving habits can expand the company’s reach beyond its existing imported-car customer base.
BYD has not disclosed an order or reservation total for the RACCO. Registration figures in the coming months will provide the first reliable indication of demand.